Chapter 1.1 Flashcards
Product
both good and services
Goods
physical products (ex. cars,computers)
Services
intangible products (ex. haircuts, education)
Consumer goods
the physical and tangible goods sold to the general public
Capital goods
physical goods that are used by industry to aid in the production of other goods and services
Factors of production
the resources needed by business to produce goods or services (the business inputs) -land/natural resources, labour, capital, enterprise
Business functions
Human resources, Finance, Marketing (product, price, promotion, place), Operation
HR
responsible for managing the personnel of the organization
Finance
in charge of managing the organization’s money
Marketing
responsible for identifying and satisfying the needs and wants of customers
Operations
responsible for the process of converting raw materials and components into finished goods, ready for sale and delivery to customer
Primary Sector
the sector that is involved with the extraction, harvesting, and conversion of natural resources
Secondary sector
manufacturing or construction of products
Tertiary sector
providing services
Quaternary sector
involved in intellectual activities that generate and share information
Sectoral change
shift in the relative share of national output and employment that is attributed to each business sector overtime
Factors of sectoral change
Higher household incomes, more leisure time, greater focus on customer services, increasing reliance on support services
Entrepreneur
an individual who plans, organizes and manages a business
Intrapteneur
an employee who thinks and acts as an entrepreneur within a section of the organization
Reasons to start a business
Growth, earning, security, transference and inheritance, hobbies, autonomy, challenge
Challenge to start a business
lack of finance, cash flow problems, marketing problems, unestablished customer base, people management problems, legalities, production problems, high production costs, poor location
Business plan
a report detailing how a business services sets out to achieve its goals and objectives
Elements of business plan
the business, the product, the market, the finance, the personnel, the marketing
Chain of production
tracks the stages of an item’s production, from the extraction of raw materials used to make the product all the way through to it being delivered to the consumer
